MIRA INFORM REPORT

 

 

Report Date :

23.04.2014

 

IDENTIFICATION DETAILS

 

Name :

GOTOH & CO LTD

 

 

Registered Office :

3-23-14 Higashi-Komagata Sumidaku Tokyo 130-0005

 

 

Country :

Japan

 

 

Financials (as on) :

31.05.2013

 

 

Date of Incorporation :

January 1963

 

 

Legal Form :

Limited Company

 

 

Line of Business :

·         Importer of Stainless Steel, Nickel, Titanium, Other Alloy Scraps & Nickel Scraps from New Zealand,  Australia, USA, Hong Kong & South Africa

·         Exporter of Stainless Steel Coils, Sheets, Boards, Plates, Angled & Crashed Coils to China, Malaysia, Hong Kong, Taiwan, Korea, Vietnam, Pakistan & Indonesia

 

 

No. of Employees :

42

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

 

Status :

Moderate

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

JAPAN ECONOMIC OVERVIEW

 

in the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop a technologically advanced economy. Two notable characteristics of the post-war economy were the close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features are now eroding under the dual pressures of global competition and domestic demographic change. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A small agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. While self-sufficient in rice production, Japan imports about 60% of its food on a caloric basis. For three decades, overall real economic growth had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the after effects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. Modest economic growth continued after 2000, but the economy has fallen into recession three times since 2008. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan into recession. Government stimulus spending helped the economy recover in late 2009 and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude earthquake and the ensuing tsunami in March disrupted manufacturing. The economy has largely recovered in the two years since the disaster, but reconstruction in the Tohoku region has been uneven. Prime Minister Shinzo ABE has declared the economy his government's top priority; he has overturned his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus, monetary easing, and structural reform. Japan joined the Trans Pacific Partnership negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2013 stood as the fourth-largest economy in the world after second-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. The new government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which is exceeding 230% of GDP. To help raise government revenue and reduce public debt, Japan decided in 2013 to gradually increase the consumption tax to a total of 10% by the year 2015. Japan is making progress on ending deflation due to a weaker yen and higher energy costs, but reliance on exports to drive growth and an aging, shrinking population pose other major long-term challenges for the economy.

 

Source : CIA

 


Company name

 

GOTOH & CO LTD

 

 

REGD NAME

 

KK Gotoh

 

 

MAIN OFFICE

 

3-23-14 Higashi-Komagata Sumidaku Tokyo 130-0005 JAPAN

 

Tel: 03-3625-2711     Fax: 03-3625-3094

 

URL:                 http://www.gotoh.com/

E-Mail address:            info@gotohm.com

 

 

ACTIVITIES

 

·         Importer of Stainless Steel, Nickel, Titanium, Other Alloy Scraps & Nickel Scraps from New Zealand,  Australia, USA, Hong Kong & South Africa

 

·         Exporter of Stainless Steel Coils, Sheets, Boards, Plates, Angled & Crashed Coils to China, Malaysia, Hong Kong, Taiwan, Korea, Vietnam, Pakistan & Indonesia

 

 

BRANCHES

 

Ichikawa, Ohta, Shibatagun (Miyagi) (--attached with cutting, rolling works)

 

 

OFFICERS

 

MORIHIRO GOTOH, PRES & CEO

Kimihide Gotoh, s/mgn dir         Hiromichi Gotoh, mgn dir                                                                      

Shoji Gotoh, dir                         Kinuko Kohno, dir

 

                                   

Yen Amount:     In million Yen, unless otherwise stated

 


SUMMARY    

 

FINANCES        FAI       A/SALES          Yen 4,256 M

PAYMENTSNo Complaints    CAPITAL           Yen 90 M

TREND SLOW                           WORTH            Yen 966 M

STARTED         1963                             EMPLOYES      42

 

 

COMMENT

 

TRADING HOUSE SPECIALIZING IN STAINLESS STEEL & SCRAPS. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

 

The subject company was established originally in 1938 by Kentaro Gotoh as stainless steel rolling workshop in Arakawaku, Tokyo, on his account, and was incorporated in 1963, the firm has been succeeded by his descendants.  This is a trading house, essentially owned and managed by Gotoh family, specializing in importing stainless steel scraps and exporting stainless steel products.  Imports are from New Zealand, Australia, USA, Asia, while exports centrally to S/E Asian countries, including China.  Handles a total of about 65,000 tons products/year. 

 

 

FINANCIAL INFORMATION

 

The sales volume for May/2013 fiscal term amounted to Yen 4,256 million, an 18% down from Yen 5,188 million in the previous term.  High Yen hurt both imports & exports, reducing earnings in Yen terms.  The recurring profit was posted at Yen 20 million and the net profit at Yen 18 million, respectively, compared with Yen 1 million recurring profit and Yen 9 million net profit, respectively, a year ago.

 

For the current term ending May 2014 the recurring profit is projected at Yen 25 million and the net profit at Yen 20 million, respectively, on a 5% rise in turnover, to Yen 4,450 million. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

 

Date Registered:  Jan 1963

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         280,000 shares

Issued:                180,000 shares

Sum:                            Yen 90 million

Major shareholders (%): Morihiro Gotoh (36.5), Eiko Gotoh (28.6)

No. of shareholders: 18

 

Nothing detrimental is known as to the commercial morality of executives.

 

 

OPERATION

 

Activities: A trading house for import and export of stainless steel & scraps totaling 65,000 tons/year:

 

Imports (85%) totaling 55,000 tons/year: stainless steel, nickel, titanium, other alloy scraps, nickel scraps, other, from New Zealand,  Australia, USA, Hong Kong, S Africa, other;

 

Exports (15%) totaling 10,000 tons/year: stainless steel coils, sheets, boards, plates, angled, crashed coils, other, to China, Malaysia, Hong Kong, Taiwan, Korea, Vietnam, Pakistan, Indonesia, other.

 

Clients: [Steel mills, steel dealers] Nippon Steel & Sumikin Stainless Steel Corp, Nippon Steel Trading, Sumitomo Metals (Naoetsu) Ltd, Nippon Yakin Kogyo, Sumikin Bussan Corp, Mitsui & Co, other. 

Exports (10,000 tons/year) to Malaysia, Hong Kong, China, Taiwan, Korea, Vietnam, Pakistan, other.

 

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Sumikin Bussan Corp, Nippon Stainless Shoji, Nippon Yakin Kogyo, Mitsui & Co, Nippon Steel Trading, other. 

 

Imports (55,000 tons/year) from New Zealand, Australia, USA, Hong Kong, S Africa, other.

 

Payment record: No Complaints

 

Location: Business area in Tokyo.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

·         MUFG (Oshiage)

·         Nakanosato Shinyo Kumiai (H/O)

Relations: Satisfactory

 


FINANCES

(In Million Yen)

 

       Terms Ending:

31/05/2014

31/05/2013

31/05/2012

31/05/2011

Annual Sales

 

4,450

4,256

5,188

6,785

Recur. Profit

 

25

20

1

 

Net Profit

 

20

18

9

54

Total Assets

 

 

4,522

4,490

4,683

Current Assets

 

 

2,903

2,883

 

Current Liabs

 

 

1,107

1,137

 

Net Worth

 

 

966

947

937

Capital, Paid-Up

 

 

90

90

90

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

4.56

-17.96

-23.54

22.94

    Current Ratio

..

262.24

253.56

..

    N.Worth Ratio

..

21.36

21.09

20.01

    R.Profit/Sales

0.56

0.47

0.02

..

    N.Profit/Sales

0.45

0.42

0.17

0.80

    Return On Equity

..

1.86

0.95

5.76

 

Notes: Forecast (or estimated) figures for 31/05/2014 fiscal term.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.71

UK Pound

1

Rs.102.04

Euro

1

Rs.83.77

 

INFORMATION DETAILS

 

Analysis Done by :

sub

 

 

Report Prepared by :

MNL

 

RATING EXPLANATIONS

 

RATING

STATUS

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.